The federal government has unveiled plans to reduce the development budget of the Ministry of Information Technology and Telecommunication by a staggering 43 percent for the upcoming fiscal year 2025-26. Despite repeated commitments to prioritizing digital growth and innovation, the move signals a significant policy shift that has left stakeholders in the technology industry worried about the sector’s future.
According to budgetary documents reviewed by ProPakistani, the IT Ministry’s development allocation is set at Rs. 13.52 billion, marking a steep drop from the Rs. 23.92 billion earmarked in the previous fiscal year. This cutback of Rs. 10.4 billion poses challenges for ongoing and planned IT initiatives.
Of the total budgeted funds, Rs. 3.64 billion will come from domestic sources, while the remaining Rs. 9.88 billion is expected to be secured through external funding avenues. Industry experts believe the dependence on external funding could limit the speed and effectiveness of key IT programs, especially those critical for digital infrastructure and capacity building.
The decision to reduce the development budget contradicts the government’s earlier rhetoric about leveraging IT as a primary engine for economic growth and employment generation. Technology professionals and trade associations have voiced concerns, stressing that the sector’s progress hinges on consistent investment in modern infrastructure and innovation-driven projects.
Observers point out that Pakistan’s digital transformation ambitions may suffer if these budget cuts are implemented without a clear plan for addressing the resulting gaps. Small and medium-sized IT enterprises, which rely on government-backed initiatives to expand their digital footprints, could be particularly vulnerable to these funding reductions.
Insiders within the IT Ministry have reportedly expressed frustration, warning that the cuts will stall ongoing projects and delay the launch of new initiatives aimed at boosting digital literacy, cybersecurity, and software development capacity.
This latest development raises questions about the government’s broader strategy for integrating technology into national economic planning. If the IT sector is truly seen as a growth catalyst, industry leaders argue, it deserves more than just lip service — sustained investment is essential to maintain momentum and foster competitiveness in the rapidly evolving digital landscape.
